Is Credo Technology Group Holding Ltd (CRDO) A Good Investment?


Credo Technology Group Holding Ltd (NASDAQ:CRDO) finished Wednesday with an addition of $0.92 to close at $9.86, an upside of 10.29 percent. An average of 1,336,100 shares of common stock have been traded in the last five days. There was a gain of $1.98 in the past week, and it reached a new high 22 times over the past 12 months. The last 20 days have seen an average of 1,269,030 shares traded, while the 50-day average volume stands at 1,567,658.

CRDO stock has increased by 9.19% in the last month. The company shares reached their 1-month lowest point of $7.20 on 05/04/23. With the stock rallying to its 52-week high on 02/14/23, shares of the company touched a low of $7.20 and a high of $19.46 in 52 weeks. It has reached a new high 14 times so far this year and lost -25.92% or -$3.45 in price. In spite of this, the price is down -49.33% from the 52-week high.

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Insider Transactions

CRDO stock investors should be aware that Credo Technology Group Holding Ltd (CRDO) stock had its last reported insider trading activity 70 days ago on Mar 09. In this transaction, the insider spent $243,123. Chief Technology Officer, Cheng Chi Fung, disposed of 6,250 shares at a price of $10.42 on Mar 01. The insider now owns more than $65,099 worth of shares. Prior to that, Chief Operating Officer Lam Yat Tung went on to Sale 2,590 shares at $10.42 each on Mar 01. An amount of $26,977 was transacted.

Financial Health

The quick ratio of Credo Technology Group Holding Ltd for the three months ended January 30 was 6.90, and the current ratio was 8.10, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.00 and a total debt to equity ratio of 0.00 for the quarter ending January 30. Credo Technology Group Holding Ltd’s EBITDA margin for the year ending January 30 is -13.19%, while its operating margin for the same period stands at -5.90%. Its gross profit as reported stood at $64.02 million compared to revenue of $106.48 million.

Earnings Surprise

For the three-month period that ended January 30, Credo Technology Group Holding Ltd had $109.23 million in cash. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $2.82 million in the quarter, while revenues of -$3.36 million were grew 104.96%. The analyst consensus anticipated Credo Technology Group Holding Ltd’s latest quarter earnings to come in at $0.04 per share, but it turned out to be $0.05, a 25.00% surprise. For the quarter, EBITDA amounted to -$0.61 million. Shareholders own equity worth $147.99 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Credo Technology Group Holding Ltd (CRDO) price momentum. RSI 9-day as of the close on 17 May was 79.86%, suggesting the stock is Overbought, with historical volatility in this time frame at 50.43%.

As of today, CRDO’s price is $8.65 +25.13% or $1.98 from its 5-day moving average. CRDO is currently trading +12.81% higher than its 20-day SMA and -26.03% lower than its 100-day SMA. However, the stock’s current price level is +0.10% above the SMA50 and -33.56% below the SMA200.

The stochastic %K and %D were 95.19% and 82.29%, respectively, and the average true range (ATR) was 0.47. With the 14-day stochastic at 94.84% and the average true range at 0.44, the RSI (14) stands at 68.99%. The stock has reached 0.92 on the 9-day MACD Oscillator while the 14-day reading was at 1.08.

Analyst Ratings

Exane BNP Paribas launched coverage on Credo Technology Group Holding Ltd (NASDAQ: CRDO) in its analyst report released on February 28, 2023. The firm assigned the stock an Outperform rating. The consensus rating for Credo Technology Group Holding Ltd (CRDO) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell CRDO, while 1 suggest investors hold. There are 1 analyst who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 7 others rate it as a “buy”.

What is CRDO’s price target for the next 12 months?

Analysts predict a range of price targets between $11.00 and $16.00, with a median target of $14.00. Taking a look at these predictions, the average price target given by analysts for Credo Technology Group Holding Ltd (CRDO) stock is $13.78.


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